The chaos and busy traffic on the Indian streets make it all the more necessary for bike owners to get excellent bike insurance for their vehicle, providing maximum coverage. But should you buy a standard two-wheeler insurance online, or should you look for some add-ons too? Let’s read ahead to know about it.
Zero Depreciation Cover in Bike Insurance
As a bike owner, you must be knowing the importance of having good bike insurance for your two-wheeler. It covers you against unexpected financial losses during an accident and provides additional coverage if you buy the right add-ons with the policy. Zero depreciation cover is one such add-on that you cannot afford to miss.
A comprehensive cover which includes own damage insurance for bike is not enough as various other things are considered during a claim settlement. In the case of a vehicle, depreciation plays an essential part in finalizing the claim amount.
For the uninitiated, depreciation is a reduction in the asset’s value over a period of time. Your two-wheeler is also an asset whose value keeps reducing year after year. If you don’t take a zero depreciation cover, then the final claim settlement gets calculated on the depreciated bike value instead of the original value.
For example, if your bike gets stolen or meets an accident, the insurer will cover you for complete losses if you have taken the zero depreciation cover. For those who took bike insurance without any zero depreciation cover, the claim amount will be calculated considering the bike’s depreciated value, resulting in a lower claim amount.
Do You Really Need a Zero Depreciation Cover?
If you’re looking for bike insurance that gives you maximum financial coverage in the long run, you cannot ignore the zero depreciation cover. A zero depreciation cover is like an enhanced cover on your bike insurance policy that helps you save money in the long run and minimizes your out-of-pocket expenses at the time of claim.
Bike owners who have taken this add-on can relax as they can get the actual claim amount after all the necessary deductions. If you want to bid-adieu to lower claim amounts, you should take a zero depreciation cover.
Though buying it will increase your premium amount, you shouldn’t hesitate to buy it. Instead of looking for ways to lower your auto insurance cost, you should be focusing on safeguarding yourself against future financial losses. But before you proceed to buy a zero depreciation cover, check out its inclusions:
- Compensation for repair, cost of replacement, and depreciable parts like rubber, fiberglass, nylon, and plastic parts.
- Most companies allow a maximum number of two permissible claims throughout the policy tenure. However, it varies from one insurance company to another, so read the documents carefully to get accurate information.
- Some plans may cover partial damages of bike tires and battery without calculating the depreciation.
- Nil depreciation without excess isn’t available for two-wheeler models, so be sure to check if your bike is covered before taking any cover.
All the things mentioned above are included in most policies. However, it is best to get it double-checked from the respective insurer because not all policies and add-ons are created equal by different insurers.
Exclusions in a Zero Depreciation Cover
To ensure you are picking the right policy and add-ons, you have to be informed of the inclusions and exclusions. Like you read the policy documents to understand car insurance properly, you need to do the same before purchasing any bike insurance or any add-on related to it.
Now that you know what is usually included in a zero depreciation cover, it’s time to find out what is excluded by going through the following points:
- Total damage/loss of the bike
- Damage caused due to uninsured bike items and mechanical faults
- Routine aging or wear and tear
You can confirm with the insurer if there are other exclusions besides the one mentioned above.
Remember to get your bike repaired at one of the available network garages to make a claim. You won’t be able to claim zero depreciation cover if your bike is damaged beyond any scope of repair.